[Barnwell, S.C.] In early 2014, Kronotex USA will complete an investment of approximately $30 million in laminate paper treating technology at the company’s facility here. While the company sites numerous reasons for investing in such technology, this acts as another step towards its commitment to becoming a producer that is fully Made in America.

According to George Kelley, CEO at Kronotex, the company is about 95 percent there. “The eventual goal is 100 percent so that we are able to make that statement to our customers,” he said. “Going forward for years to come, that message will have a lot of importance for the category, so that is one main reason we are making this investment.”

As laminate continues to be challenged by luxury vinyl tile (LVT) sales, being able to tout the advantages of a domestically produced laminate product is something that Kronotex believes will be a critical differentiator. And as external raw material costs continue to rise at unprecedented rates, investing in new paper treating technology will be used as a means to help mitigate costs.

Kelley explained that this updated technology consists of bringing the process of paper treating, which is typically outsourced, to the company’s facility in Barnwell. “One cost element that is a major factor in laminate is the way in which the design paper is treated. This is what provides laminate with many of its great qualities such as scratch resistance and clarity,” said Kelley. “The whole idea of this project is to control our cost variables so we have the flexibility to support our customers with a better cost program going forward.”

Kronotex has its eyes set on launching two lines fully operational with the technology in its domestic facility by the second quarter of 2014. Kelley noted that this is not something that will be visible to its customers but rather allows them to have more leverage from a reliability standpoint.

“We are one of many suppliers that supply these services, so this will help control our cost, our performance and our delivery. It will give us the opportunity to better service our customers, but at the end of the day it won’t effect in terms of what we will do in next year’s volume,” Kelley said. “It’s an internal measure to pay dividends and is another step in helping us to be completely vertically integrated in the U.S.”

What Kronotex ultimately aims to show with this investment, he said, is its commitment to the marketplace in the laminate flooring business. “After the difficulties that the market has endured overall over the years in all product categories, we believe that laminate flooring will continue to have life and has the ability to continue growing,” said Kelley. “And we believe that it will.”

Kronotex’s investment in paper treating helps the company become vertically integrated in the U.S.